Trade dismay at job scheme update
Ben Ireland and Juliet Dennis
Travel agency bosses have reiterated pleas for sector-specific government support to protect jobs after the chancellor’s latest announcement again failed to recognise the industry’s position. Rishi Sunak last week expanded
the Job Support Scheme, which replaces furlough from November 1, to cover two-thirds of wages of staff working for firms “required to close their premises due to coronavirus restrictions” and to provide cash grants of up to £3,000 a month. Incomes will be provided for
workers in sectors such as pubs and restaurants that must close in
tier-three areas of the local lockdown measures announced by prime minister Boris Johnson on Monday. Agents said the revised scheme
did not account for the loss of business the travel industry continues to face, as neither retail premises nor homeworking businesses will benefit. They said travel remained
“overlooked” for government support unlike sectors such as hospitality. Miles Morgan, chairman of
Miles Morgan Travel, said he was “disappointed” with the “incredibly frustrating” update to the Job Support Scheme. “At some point, the government
needs to recognise that some sectors are facing more pain than others. “They don’t deem the travel
The hospitality
sector seems to have the ear of government and we clearly do not
industry as being shut down since March [yet] we still have to answer phones to our customers. “I’ve given up hope of getting any
help. The hospitality sector seems to have the ear of government and we undoubtedly do not.” Neil Basnett, owner of Holiday
Inspirations, has set up a meeting between his local MP, minister for business and industry Nadhim Zahawi, and local travel firm owners
to discuss the lack of support for the outbound travel industry. He added: “The travel industry
has been overlooked by government.” Graeme Brett, owner of Westoe
Travel and Abta’s regional chairman for the northeast, has written to the leaders of seven local councils to call for support to include travel sellers and “explain that shutting a shop means people won’t get refunds”. He suggested Abta and consortia
employ private lobbyists with access to the House of Commons to make the industry’s case, adding: “Hospitality had Eat Out to Help Out and now has wage support. Apart from initial grants, we’ve had no
support at all.” i Get Social, page 21
Tanzer demands ‘decisive action’ from government
Ian Taylor
Abta chief executive Mark Tanzer was set to demand “decisive and urgent action” from the government and its Global Travel Taskforce as he opened the Travel Convention on Wednesday, complaining that support for the industry so far “has been too little too late”. The industry had “experienced
cardiac arrest” since March, Tanzer was due to tell the convention, insisting: “We’re more than six months into this crisis and the
4 15 OCTOBER 2020
basic tools to help build customer confidence to travel are still missing. “We must move away from
blanket Foreign Office advice and have a regionalised approach to advice and quarantine. We urgently need a testing system that is rapid, efficient and trusted.” Transport secretary Grant
Shapps was due to address the online convention and Tanzer urged: “I implore you to have something in place soon. “We need direct sector support. The chancellor has recognised that
Mark Tanzer says ‘we need direct sector support’
the furlough scheme should be extended for hospitality. But health measures have effectively closed the travel industry, so we’re in the same boat. Only tailored support will enable us to get through the winter and avoid tens, if not hundreds, of thousands of job losses.” Tanzer was due to note the failure
to pay prompt refunds had “created a lot of anger and mistrust”, pointing out “the difficulty in extracting cash refunds from airlines” and arguing: “The idea that airlines don’t fail is surely gone, yet there is still no airline
insolvency provision in place.” However, he was to tell the
convention: “We should look hard at where the risk burden falls, but we must be careful what we wish for. If we strip out customer protections, we strip out a lot of the value we add.” Abta was due to launch a report,
‘Tourism for Good – A Roadmap for Rebuilding Travel and Tourism’, aimed at putting sustainability at the heart of travel’s recovery, with Tanzer arguing: “We have to look at the whole spectrum of sustainability issues and ask ‘how can we do more?’”
travelweekly.co.uk
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